Pub
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mai
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reem
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#40
0631
70JUNE 2020
C A N A D A’ S S U P P LY C H A I N M A G A Z I N E
INSIDELOGISTICS.C A
Air Freight
Warehouse technology
Digitization
NOW INCLUDING:
CanadianShipper
KEEPING UP WITH
COVIDHow supply chains are adapting during the pandemic
01_iL_Jun20_cover.indd 1 2020-05-29 9:27 AM
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03_MMD_Jun20_Contents.indd 2 2020-05-29 12:35 PM
insidelogistics.ca 3
In every issue:
5 Taking Stock Editor’s analysis
7 Supply Chain ScanNews and numbers from around the world
10 Movers + Shakers Appointments and promotions
28 Product InnovationsFulfillment technologies
29 The View with LouRethinking the global supply chain
30 The Bigger Picture Rethinking inventory
CONTENTS
16 Air cargoWhat’s in store for an extremely challenged industry
26 Building a legacyBlum Canada opts for automated DC to meet demand
23 Digital 3PLs Digitization is the new table stakes for 3PL operators
6
Cover photo: iStockimages.com
COVER SUPPLY CHAIN SCANPost Covid-19 trends | Protective protocols | Movers + Shakers |VUCA | Mobile devices in the DC | Is just-in-time dead?
JUNE 2020 • VOLUME 65 • NUMBER 03
C A N A D A’ S S U P P LY C H A I N M A G A Z I N E
NOW NOW INCORPORATINGINCORPORATING
CANADIAN CANADIAN SHIPPERSHIPPER
Stress test How Covid-19
will change distribution centre
operations
« «
14
21 Freight forwardingSmooth sailing in spite of pandemic woes
03_MMD_Jun20_Contents.indd 3 2020-05-29 12:57 PM
herculesfreight.com
Learn more at youtube.com/user/herculesfreight
There comes a time in every traffic manager’s life when they want to start seeing other carriers. That’s us — nice to meet you!
03_MMD_Jun20_Contents.indd 4 2020-05-29 12:35 PM
insidelogistics.ca 5
HOW THE WORLD HAS CHANGED since I last wrote in this space. By
the time you read this it will be about three months since the Covid-19
pandemic was declared, with the resulting shutdowns challenging the
very foundations of global supply chains.
We are all learning to manage through the surprises of working from
home, video calls in our work tops and PJ bottoms, physical distancing,
and the wildly oscillating conditions of supply and demand for basics
and important items like personal protective gear.
At this time of profound disruption it has never been more important
to have a trusted source of information about your industry. And while
we are practicing physical and social distancing, when it comes to all the
news and analysis for Canadian supply chain operations, we’ve now
brought it together into one authoritative publication.
Canadian Shipper has joined Inside Logistics to create the only Canadian
source of complete end-to-end supply chain news and analysis. The
combined publication, which has the largest audited circulation in our
market, will have a strong focus on warehousing and distribution oper-
ations, along with all modes of transportation. It’s written for shippers,
and now will include stories on transportation services, trade, and for-
warding alongside the distribution centre, intralogistics and inventory
control stories you are used to seeing in Inside Logistics.Along with the combined print publication, which will continue to be
published every other month, the Canadian Shipper digital archives will
be folded into the Inside Logistics website and, as you have likely already
noticed, the twice-weekly e-newsletters have also been integrated.
As the editorial leader of this fresh, larger enterprise, I will endeavour
to continue delivering the best, most comprehensive supply chain news
to you. Covering the freight transportation marketplace is nothing new
for me. As editor of CargoNews Asia out of Hong Kong back in 2001,
I managed it through the transportation crisis that followed the 9/11
terror attacks.
So, welcome to the Canadian Shipper readers who have joined us;
I look forward to hearing from you. As always, I welcome your thoughts,
comments and story ideas about how the pandemic has disrupted, and
possibly improved, your businesses and decision making. Please drop
me a note at [email protected] or look me up on LinkedIn.
i n s i d e l o g i s t i c s . c a
EDITOR IN CHIEF: Emily Atkins(416) 614-5801 [email protected]
SALES MANAGER: Anthony Buttino(416) 614-5830 (514) 292-2297 [email protected]
CREATIVE DIRECTOR: Tim Norton (416) 510-5223 [email protected]
PRODUCTION MANAGER:Jwad Khan
(416) 510 6845 [email protected]
CIRCULATION MANAGER: Mary Garufi(416) 614 5831 [email protected]
MANAGING DIRECTOR, TRUCKING & SUPPLY CHAIN GROUP: Lou Smyrlis
NEWCOM MEDIA INC.CHAIRMAN & FOUNDER: Jim Glionna
PRESIDENT: Joe Glionna
Inside Logistics, established in 1956, is published six times a year by Newcom Media Inc.
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©Contents of this publication are protected by copyright and must not be reprinted in whole or
in part without permission of the publisher.
DISCLAIMERThis publication is for informational purposes only. You
should not act on information contained in this publication without seeking specific advice from qualified professionals. Inside Logistics accepts no responsibility or liability for claims
made for any product or service reported or advertised in this issue. Inside Logistics receives unsolicited materials,
(including letters to the editor, press releases, promotional items and images) from time to time. Inside Logistics,
its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium
whatsoever, without compensation of any sort.
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CHECK OUT OUR LOOK AT THE FUTURE OF AIR CARGO ON PAGE 30.
TAKING STOCK
MEDIA INC.
United we stand
05_IL_Jun20_Editorial.indd 5 2020-05-29 12:38 PM
BUSINESS AS USUAL will never be the same. As the
Covid-19 pandemic has unfolded there has been a
lot of speculation about what the ‘new normal’
will look like. Here are some themes emerging
as supply chain operations adjust to the new ‘pan-
demic setting’.
Shorter supply chains. Manufacturing will be
on-shored or near-shored to reduce reliance on long,
potentially breakable, global supply lines. A whopping
64 percent of manufacturers reported in April they
are likely to bring manufacturing production and
sourcing back to North America – a 10 percent
increase from a month earlier, says a survey of 1,000
North American manufacturers produced by Thomas.
According to Rich Thompson, JLL’s international
director, supply chain and logistics solutions, there
will be a big move away from manufacturing in China.
With every Fortune 500 company dependent on either
a Tier One or Tier Two plant there, they were strongly
affected by the pandemic-caused shutdown. Now, he
says, they will be looking to diversify away, intensifying
a trend that has been underway for several years.
Inventory will increase as companies build emer-
gency stocks. The just-in-time, Toyota production
model (TPPM) will be less popular, and companies
will keep larger safety stocks on hand to smooth out
supply disruptions. According to Paul Larson, whose
full analysis appears on page 13, “logisticians should
build safety stock equal to demand during lead-time
for the important items.”
Warehouses will get bigger. As a result of rising inven-
tories and the need to ensure social distance between
workers, warehouses will need to become bigger to
accommodate larger safety stocks. This may put even
more pressure on the overheated large-DC market.
E-commerce will increase demand for supersize ful-
fillment centres, over 500,000 square feet, says Craig
Meyer, JLL’s president, industrial brokerage.
Martin McVicar, CEO of Irish narrow-aisle forklift
manufacturer Combilift says inquiries for quotes
doubled in the four weeks up to the third week of
May. “Some customers are screaming for a quick
fix,” McVicar said. “Demand for space has never
been at such a high level, as Covid-19 is driving space
constraints.”
Manufacturers are looking for ways to increase
their production space in order to comply with social
distancing rules as economies around the world begin
to reopen after pandemic-forced shutdowns. McVicar
says manufacturers with typical production facilities
are looking for ways to reduce the space allocated to
storage both pre- and post-production, and those
who might have been considering a narrow-aisle
solution suddenly see that it could be the answer to
maintaining production levels.
Automation and digitization will become even more
interesting to larger companies, to militate against
labour shortages. A new survey shows one in four
North American manufacturers is considering
expanding industrial automation as a result of Covid-
19, while an additional 20 percent report they already
have systems in place.
“The Covid-19 pandemic will fundamentally redefine
how industrial companies approach their supply chains
and will further advance the digital transformation of
manufacturing,” says Tony Uphoff, president and CEO
of Thomas, which commissioned the study.
E-commerce will continue to boom, with more atten-
tion paid to scalability to meet fluctuations in
demand. Driven to new heights thanks to pandemic
lockdowns, “online market share will be more like
20 percent in 2020, instead of the projected 13 per-
cent,” says JLL’s Meyer. “It’s an inexorable, long-term
trend. E-commerce is here to stay.”
Network re-design. With re-shoring, more inventory,
and changing demand for space alongside growth
in e-commerce, and the growing trend to use of auto-
mation in warehousing, it is inevitable that existing
networks will have to be reconsidered. “Most corpo-
rate occupiers expect major changes in their domestic
networks over the next 18 months,” says JLL’s
Thompson. “Companies need more facilities and
closer to their customers.” This will drive changes in
transportation patterns, real estate demand and
labour uptake as companies seek to optimize cost
and service while minimizing risk, he says.
Risk management will be a hot topic again. In the
U.S., a bill has been proposed that would allow the
federal government to help businesses obtain insur-
ance coverage against pandemic risk. The new mea-
sure would require insurance companies to offer
policies that cover pandemics but would create a
federal backstop program.
JITIs it time to
rethink inventory?
13
MASK OR NO MASK?
Pandemic protocols
9MOVERS + SHAKERSAppointments and moves in
the supply chain sector
10BYOD
Mobile devices can make or break your HR strategy
11
7 ways the pandemic will change supply chain management
SUPPLY CHAIN SCAN | ANALYSIS By Emily Atkins
6 INSIDE Logistics JUNE 2020
06-13_IL_Jun20_News.indd 6 2020-05-29 12:33 PM
insidelogistics.ca 7
By Emily Atkins | SUPPLY CHAIN SCAN
How you can thrive on volatility, uncertainty, complexity and ambiguityVUCA – A new acronym for the pandemic
THE TERM VUCA stands for Volatility,
Uncertainty, Complexity and Ambigu-
ity – four horsemen that make supply
chain management a real challenge.
Jim Tompkins, founder and chairper-
son of Tompkins International, recently
spoke (in a webinar called “VUCA: How
do we get back to better”), about how
the four variables interact and how orga-
nizations might want to act to mitigate
the disaster.
First he explained each of the terms.
Volatility is the speed of change and
the frequency of change, whether natu-
ral or self-induced. Uncertainty is lack
of predictability, which makes it impos-
sible to define requirements. When you
cannot define what you need to suc-
ceed, it is then also impossible to opti-
mize operations.
Complexity is the multitude of forces
and confounding issues and the blur-
ring of roles. Ambiguity is haziness, the
inability to get a good read on a situation
because it is in flux.
Right now two types of disruption
are upsetting the world, innovation and
crisis. Innovation disruption is the nor-
mal cycle of new product and service
development, while crisis disruption is
the kind of ‘black swan’ event that we
are facing with the Covid-19 pandemic.
Nobody saw it coming and it has “mas-
sive transformational impact”.
“We’re doing a record innovative dis-
ruption and a record crisis disruption
at the same time,” Tompkins said. “It’s
VUCA on steroids.”
He explained what organizations can
do under these circumstances: reinvent
and adapt, calling for “optionality not
optimality”. Optionality means creating
numerous scenarios and being able
to pivot among them as circumstances
dictate.
VUCA means predicting the future is
impossible. In a normal network design
initiative managers would look at four- to
five-year requirements, capital expendi-
tures and so on and optimize the opera-
tion to meet expected requirements. In
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other words, designing to demand plans.
However, if you don’t know the
requirements, you cannot optimize the
equation. “The best you can do is define a
set of different scenarios and define what
is optimal for each,” Tompkins said.
Then you need real-time visibility into
what’s going on throughout the network
so you can instantly pivot to whichever of
the scenarios is taking place. It is a funda-
mental shift in the way supply chains are
planned, Tompkins concluded.
06-13_IL_Jun20_News.indd 7 2020-05-29 12:33 PM
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insidelogistics.ca 9
Keeping up with health & safety best practices
ph
oto
: P
ola
ris
Tra
nsp
ort
atio
n
To mask or not to mask
THE HUMBLE FACE MASK has become a
hot topic as warehouses and distribution
centres – and other workplaces – seek to
keep workers safe from the coronavirus.
As the Covid-19 pandemic has evolved,
so too has advice on whether protective
face coverings are a help or a hindrance.
At first we were told they were useless
or dangerous; now that thinking has
evolved to a recommendation that face
coverings be worn when a physical dis-
tance of two metres or more cannot be
maintained, whether at work or out in
the community.
The Canadian Centre of Occupa-
tional Health and Safety (CCOHS), a
federal agency, has issued a series of
fact sheets, protocols, links to provin-
cial resources, and other information to
help guide best practices. The tools can
be found, free of charge, at www.cohs.ca.
Supply chain operationsWe spoke to several Canadian organiza-
tions ranging from SMEs to the biggest
of them all – Amazon – to find out how
they are managing infection prevention
as they continue or return to work.
At sporting goods distributor Mizuno
Canada Ltd. the four staff in the
28,500-square-foot warehouse are back
on the job full time, said president John
Stacey. Office staff work from home.
Because of the size of the warehouse,
they are easily able to keep the required
two metres apart, and have sanitizer,
masks and gloves on hand should closer
contact be required. As part of their pro-
tocol every shipment in and out is being
recorded should any cases of Covid-19
need to be tracked.
Ontario’s Liquor Control Board
(LCBO), has experienced increased
demand for alcoholic beverages through
the pandemic. According to Nick Nanos,
LCBO’s senior vice-president, supply
chain and wholesale, keeping up was crit-
ical, and ensuring the safety of workers at
its distribution centres was key to main-
taining operations.
“In addition to a series of health and
safety measures...our employees are pro-
vided face shields and have the option
to wear non-medical face masks,” Nanos
said. “Store workers wear them and in
the warehouses it’s more on the basis
of the role and situation. If you’re at
the end of a line where there’s manual
palletization or in a jackpot or hospital
lanes, people wear them, or in the pick
mods. It really depends on what they’re
doing.”
Giant Tiger has opted to make face
masks mandatory at all stores, within dis-
tribution centres, and for its truck drivers
whenever they are outside of the truck.
The company is providing employees
with a choice of disposable masks, reus-
able masks and face shields and has pro-
vided training on their proper use and
importance. Another protocol is health
screenings and temperature checks.
“All of the measures put in place,
including heightened cleaning and san-
itization, physical distancing measures
and more, have all been done for the
health and safety of our people, their
families and our communities,” said Jess
Godin, the company’s senior vice-presi-
dent, supply chain. “We recognize that
this situation is very fluid and are focused
on adapting as the climate changes and
as further information from health offi-
cials becomes available.”
In March, Polaris Transportation
Group had some challenges procuring
hand sanitizer, gloves and masks. How-
ever, since April the company has had a
good supply and is now ordering regu-
larly to ensure there is inventory at hand.
Drivers and front-line workers have
been provided protective eye wear,
gloves and sanitizer with the addition
of face shields, and have been trained
on how to use and dispose of the PPE
properly. Additional training will be pro-
vided on an on-going basis as required.
All touch points of the trucks, inside
equipment and in the office are being
sanitized after each use. All interchange
areas are also under Covid-19 protocols,
meaning two-metre distancing, protec-
By Emily Atkins ANALYSIS | SUPPLY CHAIN SCAN
tive eye wear, gloves and masks.
“Our plan is to keep up these safety
practices until we have a vaccine for
Covid-19,” said president Dave Cox.
Gap Inc. has put measures in place,
as recommended by the World Health
Organization (WHO), to keep facilities
clean and help employees stay healthy
and physically distanced.
“We provide single-use non-medical
masks for all distribution centre work-
ers and, in Brampton, we mandate their
use in specific parts of the distribution
centre, like those managing our pick
modules,” said Terry Fisch, Gap’s senior
director, Canada - retail & e-commerce
logistics. “All employees must wash their
hands and undergo a temperature check
before passing through security.” Gap is
reviewing these protocols regularly and
modifies them as needed.
Amazon recently announced that as
part of a US$4 billion Covid-19 response
plan it has spent $800 million on health
and safety measures in its fulfillment
centres in the first six months of the
year. These include thermal screening
and disinfectant spraying, reconfiguring
break rooms, physical distancing and
mandatory masks.
Polaris Transportation Group driver Francis Polaris Transportation Group driver Francis is ready for work in his PPE.is ready for work in his PPE.
06-13_IL_Jun20_News.indd 9 2020-05-29 12:33 PM
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MOVERS + SHAKERSUnited Natural Foods, Inc. has named Stacey Kravitz the new president of UNFI Canada, effective August 2, 2020. Kravitz, who currently serves as Canada’s senior vice-president of sales, takes over as Peter Brennan, UNFI Canada’s current president, prepares for retirement. With more than 25 years in progressive high-profile leadership positions within sales at Kraft Foods, then Kraft Heinz Company and UNFI Canada, Kravitz has received numerous awards. In May 2019, she was elected to the board of directors of the Canadian Health Food Association (CHFA) and chairs CHFA’s HR committee. She is a graduate of McGill University and the Queens and Ivey Executive Program.
Jonathan Dawley takes over as president and CEO of Kion North America on May 18, 2020. He succeeds Vincent Halma, who has left the company. Dawley comes from Putzmeister Holding GmbH, a subsidiary of Sany Heavy Industry Corporation, where he was head of the Americas region for over two years. Between 2014 and 2018, he was responsible for the global aftermarket
C.H. Robinson executive chairman John Wiehoff has retired from the company’s board of directors. Wiehoff has been a director of the company since 2001. He served as CEO of C.H. Robinson from May 2002 to May 2019 and became chairman in January 2007. Previous positions with the company include senior vice-president, CFO, treasurer and corporate controller. Before that, Wiehoff was employed by Arthur Andersen LLP. He also serves on the board of Polaris Inc., Donaldson Company, Inc. and U.S. Bancorp.
Marie Robinson has joined Sysco Corporation as executive vice-president and chief supply chain officer. Before joining Sysco, Robinson was senior vice-president, chief operations and transformation officer for Capri Holding Limited, the parent holding company of Michael Kors, Versace and Jimmy Choo. She also had roles with ToysRUs, The Great Atlantic & Pacific Tea Company, Smart & Final Stores, LLC and Wal-Mart Stores, Inc. She began her career as a logistics officer for the U.S. Army.
business at JLG Industries Corporation, a subsidiary of Oshkosh Corporation. He also held senior management roles at Hyster-Yale Materials Handling Corporation from 2005 to 2014. Dawley studied business administration at Baker College in Auburn Hills, Michigan.
Joseph “Joe” Dzierzawskihas been named president and CEO of Beumer Corporation. Dzierzawski will be fully responsible for the business of Beumer Group in the North American market. A graduate of the University of Michigan, with a degree
in metallurgical engineering, Dzierzawski has attended executive management programs at the University of Michigan School of Business and INSEAD in France. He joins Beumer from Hatch Metals & Minerals group where he served as global director, technology and business development. He was previously at SMS, where he was most recently president and CEO for SMS USA and CTO for SMS Group, Inc.
06-13_IL_Jun20_News.indd 10 2020-05-29 12:33 PM
insidelogistics.ca 11
Can’t stop the signal
EFFORTS TO KEEP WORKERS off their
phones might just be keeping quality
workers out of warehouses, according to
Ian MacKenzie, head of logistics and dis-
tribution at BAST Fiber Tech.
With an average turnover rate of 20
percent, it’s hard enough to keep work-
ers engaged in the industry, and asking
the most tech-savvy generation in history
to pack away their phones can be a bar-
rier to hiring quality staff. After all, “pick
and pack is only so engaging after the
first hour,” MacKenzie says.
MacKenzie sees value in allowing
employees to use their own devices
at work, and advocates incorporating
personal devices into the workflow. “It
might be the difference between an
employee staying in the position you’ve
offered versus a competitor.”
Millennials are also used
to quickly adapting to new
tech on their devices. “I’ve
got a pretrained audience. I
don’t have to spend a week in
a room with an RF gun and
walk them through screens.
I can hand them an app or
a phone preloaded with my
software on it, and within
an hour they can probably
show me stuff I couldn’t do
before!”
Some systems for man-
aging device control are
punitive, like one called Payphone Time-
keeper. It clocks workers off payroll work-
ers when they use their devices.
MacKenzie says behavioural apps such
as Forest have the most impact on reduc-
Device management matters
By Jacob Black | SUPPLY CHAIN SCAN
ing cell phone use. It allows
workers to set time goals
and shows a small plant that
grows into a forest of trees
when people stay off their
phones.
If you miss your goal,
or check your phone too
much, you kill your tree. If
you grow enough trees the
app provider will plant a
real tree on your behalf.
It’s easy to focus on
mobile devices, but MacK-
enzie says the real answer
to a successful operation is
cultural. “At the end of the
day, devices aren’t the only
source of lost productivity or distraction.
It’s about managing behaviours. That’s
what our roles as supervisors has become.
Hire attitude and effort over skills and the
tide will rise on culture.” ph
oto
: Ja
cob
Bla
ck
Ian MacKenzie
06-13_IL_Jun20_News.indd 11 2020-05-29 12:33 PM
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Researchers develop app to keep truck drivers safe
SUPPLY CHAIN SCAN | INNOVATIONS
Geofencing allows trucks to be automatically directed to dock doors
RESEARCHERS AT Conestoga College
in Kitchener, Ontario, are building a
mobile software application that will help
critical supply chain workers maintain
physical distancing during the Covid-19
pandemic.
Each day, hundreds of truck drivers,
now deemed essential workers, move
between the company’s facilities, haul-
ing frozen food and other goods across
the country. The new software applica-
tion will allow drivers to remain in their
trucks and avoid face-to-face contact
when arriving at a CCS facility.
“Working in collaboration with CCS
programmers, we have built an applica-
tion that uses the concept of geofenc-
ing to monitor truck drivers as they
approach CCS facilities,” said principal
investigator Russell Foubert.
“By using GPS or cellular data, the
system can track drivers to understand
when their trucks are within the appro-
priate range, then issue door assign-
ments to drivers through a mobile
check-in process, eliminating the need
for them to enter the building.”
Student researchers Taylor Beck and
Travis Roy from Conestoga’s Software
Engineering Technology program have
been working on the project since Jan-
uary 2020, before the Covid-19 pan-
demic reached North America; however,
there’s a new sense of urgency to deliver
the prototype.
“Our cold storage facilities provide
a critical service to food manufacturers
across the country. The current situation
has highlighted the importance of keep-
ing Canada’s food supply chain up and
running so deliveries to grocery stores
can continue uninterrupted,” said Gavin
Sargeant, vice-president of CCS.
“If we can eliminate the need for
truck drivers to park in our yards and
enter our offices to do paperwork, we
can reduce the risk to workers while also
making our operations more efficient.”
CCS hoped to have some of their driv-
ers using the mobile software applica-
tion by the end of May.
Researchers are also discussing poten-
tial opportunities to further enhance the
system.
“We’re exploring how this technology
could be used to automate more of the
process,” explained Foubert.
The prototype is being developed
by researchers at the college’s SMART
(Smart Manufacturing and Advanced
Recycling Technologies) Centre in col-
laboration with Kitchener-based Cones-
toga Cold Storage (CCS).
06-13_IL_Jun20_News.indd 12 2020-05-29 12:33 PM
insidelogistics.ca 13
By Paul D. Larson, Ph.D. SUPPLY CHAIN SCAN
On a chilly, sunny April morning in
Winnipeg, the author was sent to a nearby
store to buy toilet paper, just-in-time. The
aisle dedicated to paper products was barren.
Such a stunning, sudden logistics service
breakdown!
Logistics and JIT Stated most simply, logistics is the management of inventory,
in motion and at rest, to serve customers. Transportation and
warehousing are the primary logistics functions involved in
the motion and rest part of the equation. Logistics managers
balance customer service and total costs. The beauty of just-in-
time (JIT) is its promise to maintain service with lower inven-
tory levels – and lower costs.
But JIT is built on the assumption of stability, i.e. level
demand and short, reliable lead times. However, sudden
supply chain disruptions, such as fires, floods or pandemics,
bring instability. Demand surges for certain essential items –
and plummets for others. Upstream shortages mean longer,
less reliable lead times. Forward buying – sometimes known as
panic buying – involves purchasing volumes in excess of typical
demand. It is triggered by anticipation of impending shortages
or rising prices. Erratic demand and unreliable delivery invali-
date the assumptions enabling JIT.
What’s a logistician to do? First, reduce upstream lead time and lead time variability.
This might mean moving to multiple sourcing and/or local
sourcing. During a disruption, distant, single sources are risky
in terms of lead time. Local sources are likely able to respond
more quickly.
Second, anticipate volatility. Of course, some disasters can-
not be anticipated. What about the coronavirus pandemic? On
January 30, the World Health Organization (WHO) declared
a global public health emergency. The very next day, the U.S.
blocked foreign nationals who had been in China within the
previous two weeks from entering. How many supply chain man-
agers in JIT operations anticipated the coming volatility in both
lead time and demand? How many placed orders for critical
inventory items?
Moving forward, logistics managers are advised to partition
their inventory items, based on importance and volatility of
supply and/or demand. Often item importance is based on
annual volume multiplied by dollar value. So, a million-dollar
item with volume of one is just as important as a $1.00 item
with a one million-unit volume. However, there is more to item
importance than volume X value. If an absence of light bulbs
or protective gloves shuts the operation down or endangers
employees, those items are important, irrespective of volume
Is JIT out of time?
and value. If a stock-out means losing customers (or employ-
ees) forever, the item is important.
If a disaster is anticipated, logisticians should build safety
stock equal to at least demand during lead time for the import-
ant items. So, if expected lead time is 50 days and daily demand
is 100 units, hold 5,000 units in stock. These items could be
warehoused in a centralized location, as long as fast transport
is available when needed.
It’s about time Is JIT out of time? No, but it is about time! JIT is making and
moving things just as needed. It has always been about time –
and it still is. It’s about reducing lead time, but also about under-
standing determinants of lead time. In a world of volatility, JIT
can no longer assume stability. Today, in Winnipeg, there is an
ample supply of toilet paper on store shelves once again – and
a two-month supply in the author’s basement, just-in-case.
Paul Larson is CN Professor of SCM at the University of Manitoba
www.rfpathways.com
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06-13_IL_Jun20_News.indd 13 2020-05-29 1:33 PM
14 INSIDE Logistics JUNE 2020
WAREHOUSE ADAPTATION | By Jacob Stoller
The Covid-19 pandemic is causing unprecedented disruption to global supply chains. It is also providing
a rare window into the future.
14-17_IL_Jun20_warehouse tech.indd 14 2020-05-29 9:34 AM
insidelogistics.ca 15
continued on page 16
ubiquitous word until this Covid pan-
demic,” says Robert Martichenko, founder
and CEO of LeanCor Supply Chain
Group. “Now everybody’s heard the term
supply chain.”
The crisis finds many supply chain man-
agers in firefighting mode as they adjust
to the upending of retail shopping by
stay-at-home mandates. Emergency home
and curbside delivery setups have instantly
One of the many realizations from
the Covid-19 pandemic is that our
supply chains are a matter of life
and death for many Canadians.
“I do think most companies and most
supply chain leaders take this very seri-
ously,” says Jeanette Barlow, vice-president,
strategy and offering management, IBM
Sterling Supply Chain Solutions, “and I
do believe that as we emerge, post Covid-
19, there is going to be a realization across
every industry how fragile and yet critical
supply chains are.”
“The word supply chain was never a Ima
ge
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“I do believe that as we emerge, post
Covid-19, there is going to be a realization
across every industry how fragile and yet
critical supply chains are.”
– Jeanette Barlow, IBM Sterling Supply Chain Solutions
14-17_IL_Jun20_warehouse tech.indd 15 2020-05-29 9:34 AM
transformed e-commerce from a conve-
nience option to the predominant deliv-
ery method for groceries, hardware, office
supplies and other verticals – a stage that
wasn’t expected until years down the road.
“If you look at forecasts for where online
grocery is going to go over the next two,
five and 10 years, we just got a big stress
test to the fulfillment systems and online
capacity,” says Vince Martinelli, head of
product and marketing, RightHand
Robotics Inc. “It’s like we jumped ahead
five years overnight.”
Simultaneously, supply chains are facing
staffing shortages and unprecedented
demand volatility.
“We’ve seen the whole gamut,” says
Russell Kushner, senior engagement
director, professional services at supply
chain software provider Manhattan
Associates. “We’ve seen folks that have
their DCs go to almost zero volume over-
night because their stores are closed.
We’ve also seen people with major spikes.”
“It’s an odd time where certain things
are moving at a hundred miles an hour,
some things have come to a grinding halt,
and others are, somewhere in between
where they could accelerate or decelerate
on a day’s notice,” Martinelli says.
Getting in focusMany of the most visible problems, how-
ever, are not really shortcomings in the
supply chain. The toilet paper fiasco, for
example, occurred because consumers,
afraid stores would close, began hoarding,
causing widespread stock-outs. Shortages
of masks and sanitizing wipes stem from
manufacturing capacity issues.
Relative to a healthcare crisis, therefore,
it’s unfair to attribute these problems to
poor supply chain management. “We
shouldn’t hold them accountable,” says
Martichenko. “From a supply chain per-
spective, it’s not possible to know what
to store, how much to store, where to
store it.”
What’s needed is a broader way of look-
ing at the many variables that can adversely
affect a supply chain.
“Supply chain risk traditionally meant
was ‘what is our risk of supply being inter-
rupted?’” says Martichenko. “But what
we’ve realized with Covid is that it wasn’t
fulfillment centres that provide same-day
delivery of high-demand items to urban
customers.
“I think what we’ve been seeing is a shift
in facility automation and process flow,”
says Crystal Parrott, vice-president of cus-
tomer service at software provider and
system integrator Dematic. “Traditionally
you’d have big DCs and they would send
to the stores. What you’re seeing now is
the move to a lot of smaller hubs closer
and closer to the customer. You’re not
eliminating the DC, but you’ve got the
instant order facilities that have to be
closer.”
To achieve this, many companies will
have to upgrade their data-handling capa-
bilities. “The challenge has been, I believe,
that there’s so much data that you have
to pull together,” Barlow notes. “It’s easier
to do that within your swim lanes of par-
ticular processes, but to get that end-to-
end view, you really have to be able to
look across your own internal systems.”
A key advantage of this multi-layered
distribution model is that it provides a
degree of flexibility that many traditional
retail networks have lacked. “That’s a
sophisticated network of stuff to manage,”
says Martinelli, “making sure you know
where all the inventory and resources
are – but it gives you a lot of flexibility to
adapt as the demand bounces between
the different ways that people may want
to buy and receive things.”
Some companies are finding that they
are already equipped for this, at least from
a data perspective. “The customers that
we see as the most able to react have flex-
ibility built into their systems,” says
Kushner. “We had a customer that was
actually able to turn their stores into fulfill-
ment centres in under two weeks.”
Coping with volatilityThe crisis has also forced companies to
adjust instantly to huge spikes in demand.
By way of comparison, Martinelli points
out, companies spend months planning
for the holiday rush. “As warehouses get
ready for Christmas peak and the holidays,
they don’t wait until Black Friday to see
how facilities operate and how the systems
are going to hold up,” says Martinelli.
“They usually do stress testing in June.”
16 INSIDE Logistics JUNE 2020
WAREHOUSE ADAPTATION | continued from page 15
“Covid...was about demand for some
companies going through the roof, and for others,
demand just dropping. So the supply chain wasn’t interrupted at all – the
interruption was a function of demand.”
– Robert Martichenko, LeanCor Supply Chain Group
about interruption – it was about demand
for some companies going through the
roof, and for others, demand just drop-
ping. So the supply chain wasn’t inter-
rupted at all – the interruption was a
function of demand.”
The question, therefore, is not “how can
we make sure we have enough hand san-
itizers?” but “how can we prepare so that
we can quickly adjust to dramatically dif-
ferent circumstances?”
Tagging onto existing trendsFortunately, the adaptive supply chain
has been in the works for some time. The
conversion of retail outlets to curbside
pickup points, for example, leverages
existing tiered network strategies where
large DCs are supplemented by micro-
14-17_IL_Jun20_warehouse tech.indd 16 2020-05-29 9:34 AM
insidelogistics.ca 17
Artificial intelligence is raising the bar
here. Control tower technology, which
monitors conditions and events across
complex supply chains, can enable a deci-
sion maker to adjust to a pending short-
age, or re-direct shipments to meet a spike
in demand. Machine learning systems can
evaluate multiple delivery models, auto-
mating a chore that would otherwise take
months of work.
“Most companies have found an inven-
tory model that fits their demand profile
best,” says Kushner. “They might, on an
annual basis or every quarter, review it
and ensure that they’re using the right
model. But when you get these completely
out-of-the-blue changes in demand, your
inventory model could potentially lag. So
having systems that can evaluate multiple
models in real time and adjust them is, I
think, really critical.”
“It’s like an air traffic control mentality,”
says Martichenko, “and I think organiza-
tions are going to be embracing that so
they get the visibility they need, so they’ll
have the capability and the resilience to
see through these emergency events.”
Handling the goodsThe crisis has also highlighted how quickly
robots have established themselves in
warehouses and distribution centres.
“Piece-picking robots for warehouses
have only been around for three or four
years,” says Martinelli, “so it’s kind of
interesting that we’ve gone from brand
new exotic technology to something that’s
essential during a pandemic.”
This does not mean, however, that fully
automated “pandemic proof” facilities
are in the works. On the contrary, the
automation that involves the handling of
physical goods depends on humans for
the kind of adaptability that is most
needed in a crisis.
For example, put walls – which can be
rapidly implemented to facilitate high-ve-
locity batch picking of in-demand items
such as toilet paper – deploy pick-to-light
technology to help humans collaborate
on the fly with machines.
“If you’re supplying paper towels and
toilet paper,” says Kushner, “and all those
things that are high demand, the ability
to quickly enable temporary fast-moving
time is to integrate them into the overall
automation scheme of a facility.”
Adjusting to the post-Covid-19 eraA likely outcome of the crisis will be that
many who have tried e-commerce in the
past weeks will stick with it. As Parrott
explains, the pandemic has forced people
who would never have been targeted as
candidates for online ordering and deliv-
ery options to embrace them.
“The demand for individual online
ordering, specifically in grocery, is a per-
fect example,” says Parrott. “After this is
all over, all of these folks who would never
have used the online tools to begin with
are now comfortable with them.”
Another is that the supply chain profes-
sion may gain the respect that many feel it
has been denied. The crisis has shown that
supply chain professionals have a unique
visibility into the wide range of corporate
risks, even when such factors are not within
their area of accountability.
“I think supply chain management is
now going to be a very visible discipline,”
says Martichenko, “and organizations that
have not taken supply chain management
seriously as a true operational discipline
are going to say they need to get smarter
and more professionalized. Training and
education in supply chain I believe is going
to be a very common curriculum now.”
“As companies emerge from this, I think
people will be saying ‘never again – we
are not going to be caught unprepared,’”
says Barlow. “I think you’re going to start
to see some real decisions on how they
look structurally at their supply chain
and how they can sort out their points of
vulnerability, which will be coupled with
a palpable understanding that now is the
time to innovate and invest in systems
that leverage significant technological
advances such as AI to harness that data
to gain a competitive advantage.”
“The big thing we’ve all learned is that
our supply chains aren’t ready for emer-
gencies,” says Martichenko, “and that we
need to understand the risk associated
with our supply chains, and we need to
embrace supply chain management as a
serious profession, where your executive
supply chain is at the table in the board-
room.”
slots and new pick strategies helps com-
panies deal with these enormous spikes
for critical and essential goods.”
The key is planning in advance so these
alternate models are ready to implement
in the time of a crisis.
“The people that have taken the time
to design multiple processes and have
that flexibility,” says Kushner, “definitely
have advantages. They’ve got automation,
which they obviously want to maximize.
But at the same they have manual pro-
cesses configured and ready to go. It’s
about using the intelligence of your ware-
house management system and just good
old-fashioned management on the floor –
the ability to start orchestrating work
across these different processes.”
“The more automated a warehouse is,
the less flexible it actually is to scale up
and down,” says Martichenko. “So an
automated warehouse can be highly
efficient relative to the volumes it’s
designed for. But if volumes go below
your plan, it’s going to struggle, and if
your volumes exceed what it was designed
for, it’s really going to struggle. So you
get some emergency situation like the
Covid pandemic and your highly auto-
mated distribution centre is not going to
flex for that event. But a distribution cen-
tre that is being run by and large by people
can certainly flex in both directions.”
Robots also, typically, can’t be deployed
as a reactive measure – the widely dis-
cussed Robotics as a Service (RaaS) model
is currently only feasible for clearly
defined tasks such as welding.
“Automation projects in general take time
to happen,” says Martinelli. “The manufac-
ture and shipping of robotic picking systems
won’t be the slow step. What takes some
“A likely outcome of the
crisis will be that many who have
tried e-commerce in the past
weeks will stick with it.”
14-17_IL_Jun20_warehouse tech.indd 17 2020-05-29 9:34 AM
18 INSIDE Logistics JUNE 2020
AIR CARGO | By Ian Putzger
movement of healthcare and essential
supplies as well as increased volumes
of e-commerce. Should demand exceed
the capacity of its overnight network,
management is prepared to run more
daytime flights.
The all-cargo outfit had a strong 2019,
with revenues climbing seven percent
to $486.6 million and EBITDA up 21.9
percent to $156 million. The momen-
tum has carried on into this year, driven
largely by e-commerce.
This was in contrast to the interna-
tional arena. Cargojet suspended its
service to Latin America last year, and
its interline business with international
carriers – notably Asian airlines –
declined about 30 percent. Management
was hopeful that this would pick up in
2020, but the Covid-19 outbreak has hit
those hopes, says executive vice-presi-
dent Jamie Porteous.
transpacific airfreight normally moves
on passenger planes. In late March a
growing number of passenger airlines
began to deploy some of their planes
for cargo charters, predominantly
between North America and Europe.
The major U.S. airlines joined the
action, as did AC.
Its first flights went from Toronto to
Frankfurt, Amsterdam and London. By
and large European routes are half the
distance of Asian sectors, so the variable
cost is significantly lower, Strauss points
out. At this point airlines will avoid any-
thing that burns cash, he says.
Cargojet, Canada’s largest freighter
operator has also pulled back from
international flights, but – unlike AC –
it’s going full throttle. It has shifted
aircraft deployed on international
scheduled and charter routes to the
North American theatre to support the
1
The outbreak of the Covid-19 pan-
demic upended air cargo opera-
tions. As nations closed their
borders and air travel collapsed,
airlines slashed networks. Lufthansa and
Cathay Pacific cut flights by 95 and 96
percent respectively. Air Canada (AC)
suspended most of its cross-border and
international flights, leaving only skel-
eton service to a few U.S. cities, a hand-
ful of European destinations and one
route each to Asia and Latin America.
In the early stage those flights carried
freight, but it was not regular commer-
cial traffic. Only the most urgent, abso-
lutely necessary shipments were loaded,
says Tim Strauss, Air Canada’s vice-pres-
ident for cargo.
The implosion of passenger networks
has eliminated a huge chunk of bel-
ly-hold capacity. About 60 percent of
transatlantic and about 45 percent of Ima
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18-20_IL_Jun20_air cargo.indd 18 2020-05-29 9:36 AM
insidelogistics.ca 19
Ima
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Air
po
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Cold chainEdmonton International Airport com-
pleted its Fresh Cargo Center last year
to cater to the latter two segments.
Pharma traffic has been growing thanks
to the development of a pharmaceutical
cluster in the area, Lowe says.
To demonstrate its credentials in han-
dling pharma traffic, Edmonton has
gone for official accreditation under
the Center of Excellence for
Independent Validators (CEIV) pro-
gram, an industry standard championed
by the International Air Transport
Association (IATA). The next step is to
validate specific traffic lanes with other
9
airports that have the CEIV badge, Lowe
says. This guarantees shippers that every
process on either end and on the airline
that links them is certified to comply
with specific standards.
Canada’s perishables exports were
going strong last year, led by lobster
and other seafood shipments to China,
but the Covid-19 outbreak abruptly
halted this traffic during the Lunar New
Year holiday, and volumes afterwards
have been a far cry from earlier levels,
one forwarder reports. Freighter flights
between Halifax and China have been
reduced as a result.
Using downtime to profitWhile its traffic is down to a trickle, AC
Cargo is using the slow time to train its
staff using on-line courses on the use of
artificial intelligence (AI) tools that the
continued on page 20
Municipal Affairs Minister Kaycee Madu (right) and EIA President and CEO Tom Ruth (middle) Municipal Affairs Minister Kaycee Madu (right) and EIA President and CEO Tom Ruth (middle) thank a Cargojet staff member outside the plane at 12:30 am Monday, April 13. thank a Cargojet staff member outside the plane at 12:30 am Monday, April 13.
Air cargo industry responds to Covid-19Air cargo industry responds to Covid-19
18-20_IL_Jun20_air cargo.indd 19 2020-05-29 9:36 AM
carrier has developed through its partic-
ipation in Ottawa’s SCALE AI initiative,
which aims to build the next-generation
supply chain and boost industry perfor-
mance by leveraging AI technology.
For AC Cargo a big focus has been max-
imizing capacity by getting a better handle
on late cancellations and incorrect book-
ing volumes, which usually result in planes
departing with less payload than antici-
pated. The use of AI to identify patterns
revealed that cancellations and other
reductions in booked volume during the
final week before departure occur at 60
percent of the rate of bookings. It also
found that nearly half the time some cus-
tomers turn up with more or less freight
than they booked. These findings enable
the airline to improve load factors by six
to eight percent, Strauss says.
Vito Cerone, AC Cargo’s director of
marketing and sales, Americas, adds that
the rise of e-commerce and other trends
in commodities moving by air changes
We hope to get those digitized over those
three months,” he says.
Airlines have put a lot of energy into
automating the quoting and booking
steps. Many have installed mechanisms
to respond automatically to price inquiries
and take bookings for shipments on their
websites. IATA has been a tireless advocate
of digitizing processes, urging users to
replace paper documents and manual
submissions with technology.
A growing number of carriers have also
teamed up with third-party booking por-
tals like cargo.one to go after ad hoc traffic
from shippers that are not regular
customers.
“Booking platforms are game changers,”
remarks Ken Singh, president of Atlas
International Freight Forwarding. “They
are good if you need an instant quote.
Instant pricing is a very effective tool for
the requests that you do right now.”
However, he warns that fewer and fewer
people will use these platforms if they do
not provide net-net pricing.
As with other aspects of the business,
the Covid-19 pandemic has affected
online booking. The cargo charters that
several airlines have launched with pas-
senger aircraft usually cannot be booked
electronically. Many of those carriers have
set up charter desks to coordinate this
and refer clients to their local sales staff
to make bookings.
In the present situation, much of the
industry’s activity is reactive. “Capital plans
are all out the door, and probably for the
whole year,” remarks Strauss.
“We’re taking it one day at a time,” says
Lawrence, adding that there are always
opportunities, such as medical charters
in the present situation. However, monop-
oly situations at some airports can frustrate
efforts to organize a charter, for instance
if the incumbent is not flexible to accom-
modate an ad hoc flight, he remarks.
When it kicks in, the recovery should
unleash strong demand for air cargo, he
reckons. He is not alone with this outlook.
“The cargo business will come back in
demand before the passenger side,” pre-
dicts Strauss. As trade ramps up faster than
passenger traffic, belly capacity will lag
demand. “I expect three to six months of
heavy demand for air cargo,” he says.
20 INSIDE Logistics JUNE 2020
AIR CARGO | continued from page 19
Ima
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an
ad
a
Air Canada reconfigured the cabins of three Boeing 777-300ER aircraft to create additional cargo capacity.
the approach a carrier has to take to its
mix of freight on a plane.
“We can use AI to try to find the right
blend. It depends on the day on the week,
on the aircraft type and other factors,”
he says.
The use of AI is at the cutting edge of
a broad push to digitize as much of the
business as possible. Strauss intends to
use the virus-imposed slow period, which
AC expects to last for about three months,
to make another push on that broad front.
“A lot of procedures still require paper.
“The cargo business will come back in demand before the passenger side.
I expect three to six months of heavy demand for
air cargo.”Tim Strauss,
Air Canada’s vice-president for cargo
18-20_IL_Jun20_air cargo.indd 20 2020-05-29 9:36 AM
insidelogistics.ca 21
FREIGHT FOWARDING | By Ian PutzgerIm
ag
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thit
ivo
ng
, iS
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co
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U.S. importers and forwarders have
been put on alert by container lines,
ports and marine terminal opera-
tors. They predicted severe conges-
tion as a wave of import shipments
ordered weeks ago is about to hit the
docks with nowhere to go. With retailers
closed and manufacturing activity in
limbo, the fear is that many containers
will not be picked up, leading to a pile-up
of boxes that will clog port terminals.
The situation is exacerbated by a dearth
of available warehousing capacity in many
inland locations, which raises the spectre
of increased charges at those warehouses,
while shipments stuck in ports face hefty
demurrage and container detention fees.
The National Retail Federation in the
U.S. has warned that the anticipated dis-
ruption could be the biggest it has ever
continued on page 22
CARGO Canadian forwarders managing though pandemic
flowing smoothly
21-22_IL_Jun20_forwarding.indd 21 2020-05-29 9:37 AM
witnessed and called for concerted action
by all stakeholders.
Situation normalFor Canadian forwarders the issue was a
concern for a few days, but these worries
subsequently fell away, reports Bruce
Rodgers, executive director of the
Canadian International Freight Forwarders
Association (CIFFA).
To allay fears of congestion, the Port of
Halifax issued a statement on April 3 that
container vessel operations there had not
been affected by the Covid-19 pandemic
and that no restrictions had been imposed
on its traffic.
Forwarders have not experienced any
congestion at the nation’s major ports.
CIFFA has not heard of any delays from
its members, Rodgers says.
“We have no issues at Canadian ports
in terms of congestion or dwell times,”
confirms Karl-Heinz Legler, general man-
ager of Rutherford Global Logistics. “The
port of Montreal has declared that there’s
no congestion at the docks and truck
processing times are normal. We heard
the same from Vancouver.”
When the issue first arose, CIFFA
reached out to carriers and terminal oper-
ators to ask for relief on demurrage and
container detention charges. U.S. interest
groups have done the same – with mixed
results. Some carriers agreed to waive
charges, while others remained firm.
Canadian operators have not seen a
need to drop charges. With the exception
of Air Canada, which extended the free
period from three to 10 days, everybody
rejected this, pointing to the fact that
railways, trucks and ports have not stopped
operating, reports Rodgers.
“This caused some heartburn initially,
but everything seems to be operating,”
he comments.
Ken Singh, president of Atlas Interna-
tional Freight Forwarding, reckons that
the fluidity CN regained after recent rail
blockades has been a major factor in keep-
ing containers moving through the ports.
Moreover, inventory levels have come
down, he notes. Cargo that was sitting in
terminals and warehouses was cleared out
during the extended shutdown of Chinese
manufacturing in February.
“Moves by the government to delay the
payment/collection of HST/GST and
duty are wonderful for the moment, but
the major concern is what happens in
June when those amounts become due.
Will importers be able to pay in June or
are we just creating a larger possible prob-
lem a few months from now? The govern-
ment is possibly creating a problem for
customs brokers who are collecting the
duty and taxes. The liability is on the bro-
kers bond. What will the government do
to support the customs brokerage com-
munity in the event importers default or
further delay payment when these are
due in future?” asks one forwarder
executive.
From CIFFA’s vantage point, this is the
biggest headache at the moment, says
Rodgers. The organization has written to
the CRA as well as the CBSA to address
the issue that the protection was not
offered to the brokerage community.
On the issue of communication and
data flow Rodgers notes that some cus-
toms processes have moved from anti-
quated systems to online channels. He
hopes that this will remain in place. “We
don’t want to revert to archaic systems,”
he says.
Digitization stalledWhile the response to the pandemic has
pushed some processes online, elsewhere
initiatives aimed at advancing digitization
are in limbo. The drive for the electronic
house air waybill has been suspended,
Rodgers reports, adding that other initia-
tives also appear to be stalled for now.
“We wait to hear about the new export
guidance system,” he says.
“It’s going to be a slow process back.
There will be a lot of debt, a lot of fear.
A lot of companies will have depleted
their resources,” predicts Singh.
Legler’s clients have not mentioned how
they see their return to normal. “Everybody
is hunkering down now,” he says.
“You can’t just simply open up again.
It’s going to be a slow phase-in. Restrictions
will still be there,” he reflects. “Yes, there
will be a need to replenish stock, but there
are also going to be cash flow issues. You
need to make a down payment when you
place an order.”
22 INSIDE Logistics JUNE 2020
FREIGHT FOWARDING | continued from page 21
“So far, where we had containers
to deliver they were delivered, but there may be some companies that shut down 100 percent.
There may be some horror stories to be
told when this is over.”
– Karl-Heinz Legler, general manager of Rutherford Global Logistics
As with flows through ports, forwarders
have not reported problems with ware-
housing capacity inland. Nor have there
been problems with importers not accept-
ing incoming traffic.
Speedbumps ahead“So far, where we had containers to deliver
they were delivered, but there may be
some companies that shut down 100 per-
cent. There may be some horror stories
to be told when this is over,” says Legler.
The prospect of consignees unable to
pay is a serious headache.
Bruce Rodgers
21-22_IL_Jun20_forwarding.indd 22 2020-05-29 9:37 AM
insidelogistics.ca 23
THIRD-PART Y LOGISTICS | By John Tenpenny with files from Emily AtkinsIm
ag
e:
thit
ivo
ng
, iS
toc
kim
ag
es.
co
m
Digitization is not a new trend for
third-party logistics, but it has sud-
denly taken on greater urgency in
the Covid-19 world. Shippers, car-
riers, and logistics service providers have
long been seeking enhanced technologies
that empower them to reduce costs, create
efficiencies, and make more informed
business decisions. Now they are adding
business continuity to the list of digital
benefits.
According to the CSCMP’s 2020 Third-
Party Logistics Study, digital capabilities
are now a key differentiator. “Shippers
are increasingly using data to optimize
their networks and drive supply chain
decisions, and the availability of capable
IT technologies and competencies in the
IT area has become a key selection crite-
rion in shipper bid and RFP processes,”
the report notes.
Shippers are primarily looking for 3PL
providers with electronic data interchange
(EDI), transportation scheduling and
planning (TMS), warehouse management
(WMS), and visibility tools at their dis-
posal, the report says.
According to the MHI 2019 annual
report, Embracing the Digital Mindset: “In
the future supply chains will likely inte-
grate real-time supply chain visibility tools
and predictive analytics capabilities to
create transparency for all stakeholders.
Information about companies, suppliers,
and sourcing locations can be readily
available and accessible to all stakeholders
across the entire supply chain.”
And while new technologies such as
continued on page 25
Third-party logistics increases its reliance on new technologies
IMPERATIVE
23-25_IL_Jun20_3PL.indd 23 2020-05-29 1:30 PM
How Were we Able to React so Quickly?It comes down to process and procedures. Our investments into
Finding the Silver Lining: How Polaris Has Been Able to Become a Better Company Because of COVID-19
Investing in Advanced Technology Prior to COVID-19 Enabled Polaris Transportation
Q U E S T I O N S O R C O M M E N T S ? C O N TAC T O U R T E C H N O LO G Y T E A M :
P O L A R I S T R A N S P O RT.C O M | 1 . 8 0 0 . 4 0 9 . 2 2 6 9 X 1 2 4 7 | T E C H @ P O L A R I S T R A N S P O RT.C O M
23-25_IL_Jun20_3PL.indd 24 2020-05-29 1:30 PM
insidelogistics.ca 25
“Automation, digitization and improvement of
processes actually drives productivity,
which has the impact of spurring growth –
and that then creates more
employment.”– Russ Felker,
chief technology officer of GlobalTranz
THIRD-PART Y LOGISTICS | continued from page 23
blockchain, artificial intelligence, machine
learning, automation and robotics are all
in use to varying degrees across the globe,
these have yet to gain wide acceptance.
Recent events have proven to some in
the industry that having a plan is the most
important aspect of the digital transfor-
mation.
Drivers for DHL Express are on the
frontlines during the Covid-19 pandemic
and the company’s ability to respond
quickly to changes is in some part tied to
investments DHL has made in digitized
solutions.
“From the perspective of being on the
frontline at DHL Express I can say that
digitization has absolutely been critical
for us in terms of our ability to mobilize
and then execute the plans we have for
business continuity,” said Andrew Williams,
CEO of DHL Express Canada.
Drivers, out on the road every day, need
to secure proof of delivery. Through the
technology already employed, DHL was
able to have them take pictures of cus-
tomers’ signatures on a piece of paper.
Customers didn’t need to touch the driv-
er’s scanner anymore.
“This is something we would not have
been able to do, even just five years ago,”
Williams said. “We implemented this
within 48 hours, so that there was no
impact on being able to secure and collect
the proof of delivery that is such a critical
part of the commitment that we make to
customers.
“We will, through our logistics network,
move things that are critical that will make
the world a better place, faster. So, we
absolutely have to be in a position to
respond at a time like this and digitization
has helped that.”
People firstWhatever digital technology is applied,
it’s important to realize that it doesn’t
run itself. You need people.
“It’s having people with the depth of
expertise in what you’re doing and what
your customers are doing and what the
data means,” said Russ Felker, chief tech-
nology officer of GlobalTranz, a 3PL with
a network of more than 34,000 carriers
and more than 25,000 shipper customers.
“Until you have that you can’t actually
build the machine learning model, you
can’t build the artificial intelligence pat-
tern, like the chatbot that interacts with
customers. You can’t build that to interact
with logistical data unless you have logis-
tical expertise.”
Felker pointed to Uber Freight, which
started up as a completely digital platform,
like the original ride-sharing app. “Now
they’ve opened operational centres –
with people. They figured out what most
of us in the industry already have: that
you have to have good people sitting
behind the data.”
Freight doesn’t work seamlessly.
Disruptions – like Covid-19 – happen. “If
you don’t have people and relationships
built up you can’t just digitally figure out
how to handle everything that is going on,
from a driver who has decided ‘I’m not
going to deliver a load into that hotspot,’
to a lineup of container ships at a port,”
Felker added.
A purely digital system can work well in
understanding how to move freight in a
“normal” environment, but these times
are anything but normal, Felker noted.
Getting workers onboardOne of the challenges of automation and
digitization, according to Williams, is get-
ting employee buy-in. The challenge is
amplified by the company’s high hiring
rate. During the past year Deutsche Post
DHL Group added over 30,000 jobs
worldwide.
“Automation, digitization and improve-
ment of processes actually drives produc-
tivity, which has the impact of spurring
growth and that then creates more
employment,” Williams said. Companies
that can digitize and get their workforce
onside with the idea that it will improve
the business, and unlock further growth,
will move a lot faster than companies that
perhaps face internal resistance because
people fear for their future.
While companies can be focused on
big-picture projects, like robotics, auton-
omous vehicles, and big data, Williams
said, they need to ensure attention is paid
to the frontlines, with projects that
improve the employee experience, for
example.
“For us at DHL Express that has meant
the creation of an employee app that
allows an employee, and the company, to
automate many processes such as request-
ing vacation time and booking shifts.
These digitization projects don’t always
have to start at the most complex level,
like drone delivery, but sometimes it’s
best for it to move through all parts of
your business.”
A strategic approachBoth Williams and Felker feel digital
transformation is not just adopting latest
digital technologies, but establishing a
digital strategy.
3PLs transform digitally to differentiate
themselves in a competitive market and
to provide end-to-end visibility and timely,
accurate information for customers’ crit-
ical decision-making processes. According
to recent McKinsey research, companies
that aggressively digitize their supply
chains can expect to boost annual earnings
growth and revenue by around three
percent.
Digitization is a core piece of DHL’s strat-
egy. “It’s a primary feature in our strategy
and a big part of the future that is really
shaping our business and the logistics space
in the coming years,” Williams said.
With many global studies suggesting
that a significant percentage of the world’s
logistics business remains quite manual,
“there’s a huge opportunity for digitiza-
tion, and the companies that get it right
are going to go a long way.”
23-25_IL_Jun20_3PL.indd 25 2020-05-29 1:30 PM
26 INSIDE Logistics JUNE 2020
CASE STUDY | By Emily Atkins
been installing automated warehouses
since the late 1980s thanks to the scarcity
and high cost of suitable land for building.
Now they are in use throughout the com-
pany’s global network.
Nonetheless, the Canadian operation
spent a few years analyzing the business,
the number of SKUs they were handling,
and material flows. Tratt estimates that
they have about 4,000 SKUs in Canada,
with many sizes and packaging types, from
small items that would be stored in trays,
to palletized products.
Plans for the new DC evolved with the
company’s business in Canada. Many of
its customers are “larger manufacturers
that’s split between a 20-foot clear standard
warehouse and a section of narrow aisle
racking.
“We knew we needed the new building
because we couldn’t add on to the existing
building anymore; we had outgrown the
property,” says Kevin Tratt, Blum Canada’s
president and general manager.
The logic of automationOpting for an automated, high-bay DC
was a logical decision for Blum Canada,
Tratt says. In Austria, the company has
In 1952 when Julius Blum started mak-
ing horseshoe studs in Austria, modular
cabinets didn’t exist, and neither did
self-supporting automated distribution
centres. But almost 70 years later his
company has evolved into a sophisticated
manufacturer and distributor of hinge
systems, drawer runners, lift systems, and
the machines that install them, primarily
for kitchen cabinets.
And they are building automated distri-
bution centres to keep up with demand.
The latest one, in Mississauga, Ontario, will
replace a warehouse that Blum Canada has
been using since 1987. The company has
outgrown the 42,000-square-foot space
The automated facility will have two output doors and one induction door.
Ima
ge
s: B
lum
Ca
na
da
BUILDING Blum Canada invests in automation for the long haul
a legacy
26-27_IL_Jun20_warehouse case study.indd 26 2020-05-29 9:42 AM
insidelogistics.ca 27
The building stands almost 80 feet high and will house almost 6,500 pallet positions.
so they want to minimize the amount of
packaging that they’re working with. I
guess it’s the difference from shopping
at Costco, so to speak, versus a regular
supermarket,” Tratt says. The shift away
from smaller lots to more full-pallet pick-
ing made automated pallet picking the
logical choice.
When the new building goes live they
will still be picking some cartons from full
pallets, and returning what’s left back to
the warehouse, “which will be a bit of an
inconvenience”, Tratt notes. However, the
company has a three- to five-year plan to
add a small-quantity picking operation
once it can identify which
items will be exclusively car-
ton shipments or multi-car-
ton, non-pallet shipments.
A “monster”The new building is 30
metres wide, 90 metres long,
and 24 metres tall (98 by 295
by 79 feet). “It’s a monster!”
Tratt chuckles. It is com-
pletely self-supported, rest-
ing on a 1.5-metre-thick
concrete pad. The racking
was assembled first, followed
by the roof and cladding.
Inside, there will be about
6,500 pallet locations served
by three cranes, each with its own aisle.
There will be one induction point with a
transfer cart that delivers the pallet to one
of the cranes. For less-than-pallet picks
there will be two stations where human
operators will pull the cases off the pallets,
and one output location for full pallets.
When fully operational, the DC will be
staffed by two pickers handling the case
picks, and two people to load and unload
the full pallets.
Site selectionFinding the right place to put the new
DC came down to keeping it close to the
existing facility and finding an affordable
piece of land the right size. Tratt notes
that it was very important to make it pos-
sible for staff – who have an average ten-
ure of about 12 to 15 years – to get there
via public transit.
He feels they timed the purchase –
of 5.2 acres near the confluence of high-
ways 410 and 401 in the Greater Toronto
Area – extremely well. “When we made
the agreement to buy the land at the end
of 2015, it was roughly a million dollars
an acre. It’s now four and a half years
later, and what I’ve been told is they are
selling acreage just up the road from us
at two and a half million,” he says.
Finding a piece of property that would
give Blum room to grow was key, he says.
“We still have about 40 percent of the
property left – unused – that we can grow
onto when it’s required.”
No-man landAlthough the land was purchased in 2015,
it took until the end of 2018 before build-
ing began on the site. Getting permits
from the City of Mississauga was a chal-
lenge, Tratt says. “The Ontario Building
Code has no provisions for automated
warehouses. They have no clue,” he says.
When it comes to how many exit doors
you need, for example, it’s all based on
staffed warehouses, not automated facil-
ities with almost no people.
It took a lot of time and discussion to
eventually get the permits sorted out, and
by then Blum was running out of time.
In the end they went ahead and poured
the slab before the building was permit-
ted, to keep the SSI Schaefer rack instal-
lation on time.
“The cost of delaying the construction
any longer and losing another construc-
tion season far outweighed the cost of any
potential fine that we may have been levied
by the city, so we made the decision to go.
Of course, I think our general contractor
was relying on some relationships that he
had with the local inspectors in the city,
those sorts of things. As it turned out it
worked out quite nicely,” Tratt says.
Covid-19 delaysWith construction in Ontario shut down
mid-April, 2020, Blum’s project was left
partially complete. Automation supplier
Dematic was pulled off the job with the
electrical work left to be finished.
Simulations were to take place through
the spring months, with
product being gradually
loaded in as the system was
readied for operations.
The original plan was to
go live with the new facility
just after the Labour Day
holiday in September, but
Tratt expects at least a
month of delay, possibly
three. During the shutdown
there were weekly video
calls to touch base and keep
up with any changes in the
situation.
Working with Dematic
on the automation, SSI
Schaefer on the racking
and general contractor Greyson
Construction has been “awesome, right
from the start,” Tratt says. “The working
relationship between Dematic and
Greyson Construction has been great,
they always seem to find a way to make it
work.”
A legacy of automationFor Tratt seeing the racking go up and
watching the cladding get installed on
the outside of the building was exciting.
But when the cranes were installed and
the magnitude of the project became
apparent, “that was the high point” of the
construction, he says.
“The next one is going to be when they
load and retrieve the first pallet out of
that warehouse, even if it’s empty, or full
of empty boxes,” he says. “And then when
it works, I’ll retire. That’ll be the highest
point of all.”
26-27_IL_Jun20_warehouse case study.indd 27 2020-05-29 9:42 AM
PRODUCT INNOVATIONS
ALL ABOUT THE INTEGRATIONEven before the Covid-19 pandemic made e-commerce an essential service, the push was on for faster, more accurate and less labour-intensive order-fulfillment solutions. At MODEX in March this year, an emerging trend was the integration of warehouse and order management software controls with automated equipment. Mobile automated order fulfillment devices and systems stole the show. Here’s a selection of a few that caught our attention.
Integrated right-sized packagingPacksize and 6 River Systems have worked together to integrate right-sized packaging with mobile robotics. They demonstrated the system at MODEX in March. Representing a ship-from-store
environment, a Packsize iQ3 worked with 6 River Systems’s collaborative mobile robot, Chuck.
By integrating directly into a company’s warehouse management system, right-sized cartons can be created and paired with Chuck to help operators minimize walking while ensuring a sustainable box for every order. The collaboration can make labour more efficient and reduce material and shipping-related costs, all while optimizing fulfillment in a small footprint.
Larry Emmert, vice-president of operations at Legend Valve, is a customer who uses the combined solution. “Our integrated solution with Packsize and 6 River Systems has had an immediate positive impact on our productivity, packaging, and transportation costs. We would not have realized these improvements without a tightly integrated solution delivered from both of these partners,” he said.
28 INSIDE Logistics JUNE 2020
Command centre for on the fly adjustmentsGreyOrange has combined its GreyMatter software and its Ranger robots under the GreyOrange Fulfillment Operating System. Ranger robots communicate with each other and with GreyMatter as operations are executed so that the system keeps pace with real-time order flow and other realities such as workers on hand, worker pace, inventory availability, packing times and shipping windows.
The GreyMatter Command Center gives DC managers and workers a complete view of real-time operations on the floor. Control screens present information needed to stay on top of order fulfillment pace and other metrics, with drill-down skills that enable adjusting work assigned to pick-pack stations, robots and people, or adjusting other operating elements to prevent order breaches and consistently achieve operating goals.
Working with the software, the Ranger GTP is a goods-to-person (GTP) mobile robot that transports inventory to workers for picking and packing, while Ranger Mobile Sort is a mobile conveyance and sortation robot that operates in fleets to move parcels from receiving through dispatch to avoid sortation bottlenecks that can occur with rigid systems.
Robots as a ServiceBerkshire Grey is now offering Robots as a Service (RaaS). Market trends, consumer behavior, and new competition have strained retail, e-commerce, grocery, convenience, and foodservice supply chains for several years. And with the Covid-19 pandemic, demand for retail delivery is skyrocketing.
Robotic automation allows for enhanced asset utilization, and labour optimization. RaaS subscriptions make it easier for enterprises to acquire robotics technology without massive investment.
“Customers across the retail ecosystem are facing a range of challenges from demand that is double or triple normal peak volumes to significant short-term sales downturns,” said Peter Van Alstine, senior vice-president and GM for retail at Berkshire Grey. “In this extraordinary business climate, RaaS makes it possible to address labour availability challenges, avoid costly new warehouse buildouts, and secure the fiscal benefits of complete robotic automation solutions without the traditional capital requirements.”
Berkshire Grey’s robotic solutions are now available via RaaS for store replenishment; induction stations; pick cells; put modules; and, parcel sortation systems.
Picking across multiple ordersFetch Robotics and Zebra Technologies Corporation have integrated Fetch’s Autonomous Mobile Robots (AMRs) and Zebra’s FulfillmentEdge software. The solution optimizes picking across multiple orders for piece, case, and pallet workflows.
Through the combined solution, workers are collaboratively dispatched in optimized pick paths across multiple orders. Worker and AMR movements are orchestrated for picking operations but can also interleave other tasks such as replenishment into the flow to better use workers’ time in the aisles.
In addition, FulfillmentEdge can direct Fetch AMRs to other non-picking operations such as removing recycling, reverse logistics and restocking packing stations to maximize robot utili-zation. The solution also makes it easier to train workers for new workflows, reducing training and onboarding time up to 90 percent.
Zebra FulfillmentEdge uses multiple sources of data, including a customer’s warehouse management system (WMS) and other back end systems as well as contextual and mobile device data to direct and synchronize the best-next-action of multiple workers and Fetch AMRs for collaborative picking across multiple orders. It uses picking strategies that include zone picking and wave picking, among others.
28_IL_June2020_products.indd 28 2020-05-29 9:43 AM
RETHINKING THE GLOBAL SUPPLY CHAINIt provided a competitive advantage for decades.
Now it represents a business risk.
IF SUPPLY CHAIN weren’t already a
boardroom topic, it quickly became one
thanks to Covid-19. One of the most
important tests for a supply chain is its
resiliency in the face of crisis. Many
Canadian companies have supply chains
that span not only interprovincial bor-
ders, but also international borders. That
makes for a lot of links and for a lot of
things that can go wrong.
And yet, for the past 30 years or so,
very little has gone wrong. Our supply
chains have become so efficient they’ve
basically become invisible to the millions
of Canadians who depend on them to
deliver the products they need, when
they need them, at prices they can afford.
That came to a halt over the past few
months thanks to more than 200 coun-
tries and territories reporting cases of
the virus and the business disruptions
that went with it. Suddenly, finding a loaf
of bread or carton of milk on the grocery
store shelf wasn’t a certainty. Suddenly,
there were concerns about food shortages
and a frustrating inability for a few weeks
to have an effective supply of protective
equipment and test kits.
For products that have a high value
relative to their shipping cost, it often
makes sense to manufacture them in a
lower-cost region – such as Asia, Eastern
Europe or Africa – and ship them to
where they will be purchased. That’s why
our supply chains have become increas-
ingly global.
But, just as supply chains have gone
global, there has also been increased use
of subcontracting as a way to reduce costs.
Global supply chains have become deeply
tiered with suppliers drawing upon sup-
pliers. It’s not uncommon today for com-
panies to have four or more tiers of
suppliers. And because we’ve enjoyed
efficient and relatively inexpensive logis-
tics and transportation, we ended up
applying lean and just-in-time production
methods on top of all this to support
those global supply chains.
Talk of little margin for error.
Until Covid-19, such optimized, low-
cost supply chains provided us with a
competitive advantage. They were a good
thing. Worth striving for. Now they may
represent our single largest business risk.
And are worth reconsidering.
Small and medium-sized companies –
the engine that drives the Canadian econ-
omy – are the most at risk. They have the
least bargaining power and possibly the
least experience in looking for alternate
sources of parts or raw materials when a
supply chain in a remote part of the world
goes dark.
What should we do? Use the lessons
learned from the past few months to
come up with a better way forward. Begin
with considering these three areas:
Supply chain vulnerability: Sure, carrying
inventory is a cost, but it’s important to
consider how much safety stock you really
need, bean-counters be damned. To a
complex manufacturing process that
requires certification, for example, a sup-
ply chain disruption is a clear business
threat. Carrying more inventory as safety
stock may be well worth it.
Supplier vulnerability: If you don’t reg-
ularly assess the financial and operational
health of your suppliers, this is a good
time to start. Just because a country or
region may be opening up again doesn’t
mean your suppliers in that region, who
may have been closed for weeks or
months, will be ready to resume business
as usual or ever again. Localizing at least
some of your suppliers as a buffer is worth
considering.
Eyes on inventory and where it’s posi-tioned: This will help you understand
where you have flexibility in products
and inventory space so you can better
manage through short-term and long-
term risks. This is not something you’re
going to be able to do with pencil and
paper. Adopting technology designed to
deliver those business insights is a big
part of this. You need to first educate
yourself about such technologies and
then invest in them.
For as long as this virus is with us –
perhaps another year or two – we are
likely to live under continuing threats of
global supply chain disruptions. Supply
chain teams will be tasked to get creative
about how they source and store and
move products across the country. But
that’s the challenge I’m least concerned
about because being innovative is exactly
what our supply chain professionals are
best at.
THE VIEW WITH LOU
“It’s important to consider how
much safety stock you really need,
bean-counters be damned.”
LOU SMYRLISManaging Director,
Newcom Media’s Trucking & Supply Chain Group
ILonline.com 29
29_IL_Jun2020_Lou.indd 29 2020-05-29 9:49 AM
OLD LESSONS FROM A NEW PANDEMIC A reassessment of inventory practices is needed
FOR MANY INDUSTRIES in Canada,
Covid-19 has reignited the discussion of
“how much is too much” when it comes
to inventory, and how to transport inven-
tory to the “right place at the right time”.
Businesses have been fragmenting
inventory classification for decades in
order to better manage the trade-off
between carrying costs and customer ser-
vice. Classifying inventory – whether as
cycle stock, safety stock, seasonal stock,
speculative or in-transit stock – enabled
inventory managers to fine-tune demand
forecasts, improving the ability of logistics
managers to predict capacity requirements
for transportation and warehousing.
This “divide and conquer” approach
to managing inventory through classifi-
cation also enabled companies to realize
benefits from reducing inventory levels
in various categories. As transportation
systems improved with globalization,
inventory reductions became more feasi-
ble for many organizations.
This practice was exacerbated by busi-
ness philosophies that identified inventory
as waste, or focussed on inventory reduc-
tion, rather than inventory as a strategic
asset for profitability. Ever since businesses
started believing their role was to maxi-
mize profits rather than customer satis-
faction, each business generation seemed
to develop a miracle-cure for excessive
inventory.
Starting with the Toyota Production
System in the 1970s, followed by Total
Quality Management and Six Sigma in
the 1980s, and crowned by Lean Manage-
ment in the 1990s, each of these philos-
ophies improved the organization’s ability
to wring more profits from the supply
chain by reducing inventory. Supply
chains were being redesigned for investors
rather than customers. But at what cost?
And what risk?
With respect to the relationship
between inventory levels and pandemics,
the first real question mark for many peo-
ple in the 21st century occurred with the
onset of SARS (severe acute respiratory
syndrome) in 2003. Within a year SARS
quickly spread to more than two dozen
countries around the world.
Hospital inventories of PPE (personal
protective equipment) such as masks,
gowns, gloves, and sanitation products
were rapidly depleted. Just as quickly,
consumer versions of these products dis-
appeared from store shelves as customers
engaged in panic buying, afraid of the
uncertainty generated by an unknown
illness and potential shortages of products
that might protect them. Nothing sparks
panic buying like a pandemic.
One of the lessons learned from SARS
was that society needed to carry more
inventory of PPE and products that con-
sumers believed essential when faced with
a pandemic. Adherence to precautions
and practice in implementing them were
deemed critical to containing that disease.
In the world of supply chain management,
one might translate that as “risk manage-
ment” and “risk mitigation”, both depen-
dent on business strategy.
SARS taught everyone that some critical
medical items and consumer goods were
understocked, and industry partners were
often unprepared to replenish those items
quickly. As SARS receded legislators
promised we would be better protected
next time, fortified with safety stocks of
PPE and essential goods. Inventory is
expensive, however, and these promises
faded almost as quickly as the threat of
SARS itself in the years that followed.
The same problem resurfaced with the
outbreak of Covid-19 earlier this year.
The fact that society was once again unpre-
pared was evident when consumers, skep-
tical of government claims there were
plenty of food stocks to go around, began
panic buying everything from apples to
toilet paper.
Their fears were justified on January
24th when Ontario health officials naively
congratulated themselves at a press con-
ference, proclaiming, “we’re ready, we’re
prepared” even as hospitals and medical
personnel were warning of potential PPE
shortages. Nothing sparks panic buying
like a government statement that there’s
no need for panic buying.
Why do inventories tend to disappear
so quickly in the face of uncertainty? The
total business inventories-to-sales ratio
through 2018 and 2019 has been reported
at approximately 1.4 months. In other
words, businesses had enough inventory
on hand to cover about six weeks of sales.
This ratio is a product of Lean man-
agement practices, gradually reducing
inventory year over year. Six weeks inven-
tory may be sufficient in times of little
uncertainty, but six weeks inventory can
disappear in six days when faced with the
threat of a pandemic. And replenishment
times for imported products can easily
run 30 to 45 days, leaving empty shelves
in hospitals and retail stores alike.
Perhaps after this pandemic, organiza-
tions will reconsider their business strat-
egy. Does business exist to satisfy investors
or customers? Can one exist without the
other? Probably not, but when faced with
global threats due to pandemics, perhaps
a reassessment of inventory practices,
based on rationality rather than reduc-
tion, is warranted.
BIGGER PICTURE
30 INSIDE Logistics JUNE 2020
LAURIE TURNBULL CCLP, MSC is Professor,
Supply Chain Management-Global, at Conestoga College Institute of Technology and
Advanced Learning. [email protected]
30_IL_Jun2020_Bigger Picture.indd 30 2020-05-29 9:46 AM
LTL & TL
DRAYAGE
WAREHOUSING
INTERMODAL
TRANSLOAD
DISTRIBUTION
EXPRESS
CROSSBORDER
LOGISTICS
30_IL_Jun2020_Bigger Picture.indd 31 2020-05-29 9:46 AM
NEW ORLEANSNEW ORLEANS MOBILEMOBILE
JACKSONJACKSON
MEMPHISMEMPHIS
INDIANAPOLISINDIANAPOLIS
ARCADIAARCADIACHIPPEWA FALLSCHIPPEWA FALLS
DULUTHDULUTH
WINNIPEGWINNIPEG
SASKATOONSASKATOON
REGINAREGINA
CALGARYCALGARY
EDMONTONEDMONTON
PRINCE GEORGEPRINCE GEORGE
VANCOUVERVANCOUVER
PRINCE RUPERTPRINCE RUPERT
JOLIETJOLIET
MONTREALMONTREAL
QUEBECQUEBEC
TORONTOTORONTO
DETROITDETROITCHICAGOCHICAGO
MONCTONMONCTON
SAINT JOHNSAINT JOHNHALIFAXHALIFAX
DECATURDECATUR
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30_IL_Jun2020_Bigger Picture.indd 32 2020-05-29 9:46 AM